Free Guide · First-Time Buyers
Buying your first home
in San Antonio,
one step at a time.
From pre-approval to closing day, this guide lays out every step of buying a home in plain language, including the costs that tend to surprise first-time buyers once they're under contract.
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Buying your first home in San Antonio usually runs in eight steps: a consultation, pre-approval, the home search, the offer, inspections during the option period, appraisal and financing, the final walkthrough, and closing day. This free guide explains each one in plain language, along with closing costs, down payment help (the City of San Antonio's HIP and TSAHC), USDA loans for homes in areas USDA lists as eligible, and how the Texas option period works. Written by Tiffany Reed, REALTOR® and MRP in San Antonio.
Down payment programs change their rules and funding often. Confirm current terms with each program before you apply. Data current as of October 2026.
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First-Time Home Buyer Guide, 2026 Edition
Key Takeaways
What to know before
you start your search.
- FHA loans allow a down payment as low as 3.5% for borrowers with a credit score of 580 or higher.
- Some conventional loans allow 3% down, including Fannie Mae's HomeReady loan and its standard 97% loan-to-value option for first-time buyers.
- VA loans require no down payment for eligible service members, veterans and surviving spouses, as long as the price doesn't exceed the appraised value.
- The option period in the standard Texas resale contract gives you an unrestricted right to end the contract within the number of days you negotiate. If you terminate on time, your earnest money comes back and the seller keeps the separate option fee.
- The City of San Antonio's Homeownership Incentive Program (HIP) offers down payment and closing cost help to qualifying first-time buyers purchasing inside city limits. The City funds it each year and lends first come, first served, so confirm with the City what's available before you count on it.
- TSAHC's Home Sweet Texas and Homes for Texas Heroes programs can provide up to 5% of the loan amount toward a down payment or closing costs for qualifying buyers.
- Once you own and live in the home, file for the homestead exemption with your county appraisal district. The school district portion is now $140,000 (Proposition 13, November 2025), and the general filing deadline is April 30.
Data current as of October 2026 · Sources: HUD Mortgagee Letter 2026-11 · Fannie Mae · VA.gov · TREC resale contract (20-19) · City of San Antonio HIP · TSAHC · Texas Comptroller
About This Guide
The questions every
first-time buyer asks.
First-time buyers tend to ask me the same handful of questions. How much do I really need for a down payment? What's an option fee, and do I get it back? What will closing cost? None of these are silly, and all of them are easier to answer before you're in the middle of a contract.
This guide answers them in order. For the step-by-step version online, see the home buying process in San Antonio, and my buyer's page shows how I work with buyers, including on new builds. When you want to talk about your own plans: Let's Talk About Your Next Move.
What's Inside
What does the first-time
buyer guide cover?
- All eight steps of buying a home, explained in plain language
- How pre-approval works and what to ask a lender before you choose one
- The Texas option period: what it is, what the option fee buys you, and how inspections fit inside it
- Closing costs in San Antonio: what they cover, typical ranges, and how to plan for them
- Down payment help in and around San Antonio (HIP and TSAHC) and USDA loans for eligible areas: who may qualify and how to check what's available now
- The questions people feel awkward asking, answered straight
Ready for the full guide?
Send Me the Free Guide →Common Questions
What first-time buyers ask
before they reach out.
Do I need 20% down to buy a home in San Antonio?
No. Some conventional loans allow 3% down for qualifying buyers, FHA allows 3.5% with a credit score of 580 or higher, and VA loans allow no down payment for eligible buyers. USDA loans also allow no down payment for buyers within the income limits, on homes in areas USDA lists as eligible (check the address on USDA's eligibility map). Down payment help exists too, including the City of San Antonio's HIP for homes inside city limits and TSAHC's programs. Their funding and rules change, so confirm with each program before you count on it. The guide goes through each option and who may qualify.
How long does it take to buy a home in San Antonio?
Your contract sets the closing date, and the average purchase loan takes about 37 days to close. The search itself varies: some buyers find a home in a couple of weeks, and others take a few months. Knowing your price range and your must-haves before you start touring speeds it up, so talk with a lender and with me before you're ready to buy.
What is the Texas option period and why does it matter?
The option period is a set number of days, negotiated in your contract, when you can end the contract for any reason. You pay a small option fee for that right, delivered to the escrow agent within three days of the contract's effective date. If you terminate on time, your earnest money is refunded and the seller keeps the option fee. If you close, the option fee is credited toward your price. This is when you schedule inspections, so if the report turns up something you're not comfortable with, you can negotiate repairs or walk away with your earnest money.
When should I get pre-approved: before or after I find a home?
Before. Always before. A pre-approval letter usually goes in with your offer, and a home you like can draw other offers within days of listing. Getting pre-approved first also tells you your real budget, so you're touring homes that fit it instead of falling for one that doesn't. If you don't have a lender yet, I can connect you with lenders, and the guide lists the questions to ask before you choose one.
What are closing costs in San Antonio and who pays them?
Buyer closing costs commonly run 2% to 5% of the purchase price, on top of your down payment. They cover lender fees, title charges, the appraisal, and prepaid property taxes and homeowners insurance. Your lender's Loan Estimate, due within three business days of your application, lists them, and the Closing Disclosure you get at least three business days before closing shows the final numbers. You can also negotiate for the seller to pay part of your closing costs. The guide covers what's typical and what's negotiable.
Data current as of October 2026 · Sources: CFPB · CFPB Loan Estimate · TREC resale contract (20-19) · USDA Rural Development · City of San Antonio HIP · TSAHC · ICE Mortgage Monitor
Tiffany Reed, REALTOR® | MRP | Real Broker LLC
(919) 800-9870 | tiffany@tiffanyreedtx.com | tiffanyreedtx.com